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Mar 31, 2023
Ecolab Q1 2023 Earnings Report
Ecolab delivered very strong operating performance, with sales and earnings exceeding expectations. The company continues to expect further performance improvement through 2023.
Key Takeaways
Ecolab reported a strong first quarter with organic sales growth of 13% and adjusted EPS of $0.88, a 7% increase year-over-year. The company's performance was driven by double-digit growth in key segments and improved operating income margin.
Reported sales reached $3.6 billion, a 9% increase compared to the previous year, with organic sales growing by 13%.
Operating income increased by 38%, with organic operating income growth accelerating to 19%.
The organic operating income margin expanded by 50 bps year-over-year to 10.6%, driven by modest gross margin expansion and improved productivity.
Reported diluted EPS increased by 37% to $0.82, while adjusted diluted EPS rose by 7% to $0.88.
Revenue by Segment
Forward Guidance
Ecolab expects to deliver quarterly adjusted earnings per share growth that accelerates towards its low double-digit historical performance. For the second quarter of 2023, the company expects adjusted diluted earnings per share in the $1.15 to $1.25 range.
Positive Outlook
- Continued robust sales growth
- Easing delivered product cost inflation
- Improved productivity
- Strong organic sales gains
- Double-digit growth in organic operating income
Challenges Ahead
- Challenging macro environment
- High delivered product costs
- Easing demand
- Higher interest expense
- Currency translation
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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